Page 177 - GSTL_18th June 2020_Vol 37_Part 3

2020 ] IN RE : HOMBALE CONSTRUCTIONS & ESTATES PVT. LTD. 391
preconceived plan”. Its program was to be broad-based, dealing
with all levels of biology : cell biology, development of animals and
plants, brain research, behaviour, ecology and theoretical biology.
(c) The administration and management of the Institute vests in a
Council which comprises of;
(i) three members appointed by the Government of India,
(ii) one member appointed by the Government of Maharashtra,
(iii) two members appointed by the trustees of the Sir Dorabji Ta-
ta Trust,
(iv) the Director of the Institute (ex-officio member), and
(v) one co-opted member appointed by the Council.
(d) The applicant states that in this transaction, two parties are involved
viz., the contractor and the contractee and both parties have differ-
ent opinions regarding the issue in question. The applicant, who is
the contractor, is of the opinion that under the GST Act composite
supply of works contract services are taxable at 12% or at 18%. The
general GST rate is 18% and in some specified cases the lower rate
of 12% would be applicable. The applicant states that he is of the
opinion that the nature of the construction services provided by him
to the contractee is not covered under Notification No. 11/2017-
Central Tax (Rate), dated 28-6-2017 and hence the residual rate of
18% would be applicable.
(e) However, the applicant submitted that the contractee, i.e. NCBS, is
of the opinion that since it is a fully funded aided institute adminis-
tratively controlled by the Department of Atomic Energy (DAE),
Government of India and the activities of NCBS are related to the
educational research, 12% rate is applicable as per the Serial No. 3 of
item no. (vi) of Notification No. 11/2017-Central Tax (Rate), dated
28-6-2017 as amended by Notification No. 24/2017-Central Tax
(Rate), dated 21-9-2017 which reads as under :
“(vi) Service provided to the Central Government, State Govern-
ment, Union Territory, a local authority, a Governmental Authority
or a Government Entity by way of construction, erection, commis-
sioning, installation, completion, fitting out, repair, maintenance,
renovation, or alteration of -
(a) a civil structure or any other original works meant predomi-
nantly for use other than for commerce, industry, or any other
business or profession;
(b) a structure meant predominantly for use as -
(i) an educational,
(ii) a clinical, or
(iii) an art or cultural establishment; or
(c) a residential complex predominantly meant for self-use or the
use of their employees or other persons specified in paragraph
3 of the Schedule III of the Central Goods and Services Tax
Act, 2017.”

GST LAW TIMES  18th June 2020  177